Cragar Industries, Inc. Posts Earnings for Year End

Apr 04, 2001, 01:00 ET from Cragar Industries, Inc.

    PHOENIX, April 4 /PRNewswire/ -- Cragar Industries, Inc.
 (OTC Bulletin Board:   CRGR) today reported earnings for the year ended December
 31, 2000 of $1,075,029 compared to earnings for the year ended December 31,
 1999 of $54,678.
     Michael Hartzmark, CEO of Cragar said, "Calendar year 2000 was very
 exciting for us.  During the second quarter, we closed a transaction to
 purchase additional shares in Wrenchead, Inc. ('Wrenchead' at
 www.wrencheadpro.com).  Wrenchead provides enabling software solutions for the
 automotive aftermarket.  In December 2000, Wrenchead strengthened its position
 in the automotive aftermarket by acquiring Profit Pro, Inc., a privately held
 company.  We believe our equity stake in Wrenchead will provide for the
 possibility of profits in the future."
     Dr. Hartzmark added, "In addition, we successfully concluded the Company's
 transformation from a wheel manufacturer, seller, and distributor, to a
 licensing and branding vehicle.  In September 2000, we granted an exclusive
 worldwide license to Performance Wheel Outlet, Inc. to manufacture, sell, and
 distribute our line of one-piece cast aluminum wheels and related accessories.
 Combined with the two licensing agreements we consummated in 1999 with
 Carlisle Tire & Wheel Co., Inc. and Weld Racing, Inc., our licensees now cover
 the full gamut of all custom wheels.  The outsourcing of the manufacturing,
 marketing, sales and distribution operations with respect to the licensed
 products has substantially decreased Cragar's revenues and related operating,
 overhead, sales and marketing costs.  We expect the decrease in revenues to be
 replaced by a growing stream of royalty payments generated by net sales of the
 licensed products by Cragar's licensing partners.  In addition, Cragar is
 entitled to royalties based on net sales of certain new CRAGAR brand name
 products developed by Performance, Carlisle and Weld."
     Finally, Dr. Hartzmark concluded, "In another press release we issued
 today, we discussed our new relationship with Trademarketing Resources, Inc.
 We hope this new arrangement will further enhance our brand extension strategy
 and our current licensing program."
 
     Cragar Industries, Inc. was an international designer, producer, and
 seller of custom wheels and wheel accessories for cars, trucks, vans, sport
 utility vehicles, racing vehicles, and motorcycles.  The Company is now a
 licensor of the CRAGAR brand name and an investor in Wrenchead, Inc.
 
     This release includes statements that may constitute forward-looking
 statements made pursuant to the safe harbor provisions of the Private
 Securities Litigation Reform Act of 1995 including, among others, statements
 regarding the transactions with Trademarketing Resources, Inc., Carlisle Tire
 and Wheel Company, Inc., Weld Racing, Inc. and Performance Wheel Outlet, Inc.
 and expected future royalty receipts and Cragar's intent to implement a new
 business strategy regarding the CRAGAR brand name, as well as the investment
 in Wrenchead, Inc.  Forward-looking statements are inherently subject to risks
 and uncertainties, some of which cannot be predicted or quantified.  Future
 events and actual results could differ materially from those set forth in,
 contemplated by, or underlying the forward-looking statements.  Please refer
 to the Risk Factors in the Company's filings with the Securities and Exchange
 Commission, which identify certain important factors that could cause actual
 results to differ materially from those contained in our forward-looking
 statements.  These factors include, but are not limited to, dependence on
 royalty income from licensees, dependence on external financing, market
 conditions, as well as general economic conditions.  In addition, there is no
 assurance that Carlisle Tire and Wheel Company, Inc., Weld Racing, Inc.,
 Performance Wheel Outlet, Inc., and Trademarketing Resources, Inc. will be
 able to successfully develop licensing arrangements, which would have a
 material adverse effect on the royalties Cragar anticipates from the licensing
 arrangements.  There is no assurance that the Company's brand extension
 strategy will be implemented, and if so, whether it will be successful.
 Finally, there is no assurance the investment in Wrenchead, Inc. will have any
 value to Cragar.
 
 

SOURCE Cragar Industries, Inc.
    PHOENIX, April 4 /PRNewswire/ -- Cragar Industries, Inc.
 (OTC Bulletin Board:   CRGR) today reported earnings for the year ended December
 31, 2000 of $1,075,029 compared to earnings for the year ended December 31,
 1999 of $54,678.
     Michael Hartzmark, CEO of Cragar said, "Calendar year 2000 was very
 exciting for us.  During the second quarter, we closed a transaction to
 purchase additional shares in Wrenchead, Inc. ('Wrenchead' at
 www.wrencheadpro.com).  Wrenchead provides enabling software solutions for the
 automotive aftermarket.  In December 2000, Wrenchead strengthened its position
 in the automotive aftermarket by acquiring Profit Pro, Inc., a privately held
 company.  We believe our equity stake in Wrenchead will provide for the
 possibility of profits in the future."
     Dr. Hartzmark added, "In addition, we successfully concluded the Company's
 transformation from a wheel manufacturer, seller, and distributor, to a
 licensing and branding vehicle.  In September 2000, we granted an exclusive
 worldwide license to Performance Wheel Outlet, Inc. to manufacture, sell, and
 distribute our line of one-piece cast aluminum wheels and related accessories.
 Combined with the two licensing agreements we consummated in 1999 with
 Carlisle Tire & Wheel Co., Inc. and Weld Racing, Inc., our licensees now cover
 the full gamut of all custom wheels.  The outsourcing of the manufacturing,
 marketing, sales and distribution operations with respect to the licensed
 products has substantially decreased Cragar's revenues and related operating,
 overhead, sales and marketing costs.  We expect the decrease in revenues to be
 replaced by a growing stream of royalty payments generated by net sales of the
 licensed products by Cragar's licensing partners.  In addition, Cragar is
 entitled to royalties based on net sales of certain new CRAGAR brand name
 products developed by Performance, Carlisle and Weld."
     Finally, Dr. Hartzmark concluded, "In another press release we issued
 today, we discussed our new relationship with Trademarketing Resources, Inc.
 We hope this new arrangement will further enhance our brand extension strategy
 and our current licensing program."
 
     Cragar Industries, Inc. was an international designer, producer, and
 seller of custom wheels and wheel accessories for cars, trucks, vans, sport
 utility vehicles, racing vehicles, and motorcycles.  The Company is now a
 licensor of the CRAGAR brand name and an investor in Wrenchead, Inc.
 
     This release includes statements that may constitute forward-looking
 statements made pursuant to the safe harbor provisions of the Private
 Securities Litigation Reform Act of 1995 including, among others, statements
 regarding the transactions with Trademarketing Resources, Inc., Carlisle Tire
 and Wheel Company, Inc., Weld Racing, Inc. and Performance Wheel Outlet, Inc.
 and expected future royalty receipts and Cragar's intent to implement a new
 business strategy regarding the CRAGAR brand name, as well as the investment
 in Wrenchead, Inc.  Forward-looking statements are inherently subject to risks
 and uncertainties, some of which cannot be predicted or quantified.  Future
 events and actual results could differ materially from those set forth in,
 contemplated by, or underlying the forward-looking statements.  Please refer
 to the Risk Factors in the Company's filings with the Securities and Exchange
 Commission, which identify certain important factors that could cause actual
 results to differ materially from those contained in our forward-looking
 statements.  These factors include, but are not limited to, dependence on
 royalty income from licensees, dependence on external financing, market
 conditions, as well as general economic conditions.  In addition, there is no
 assurance that Carlisle Tire and Wheel Company, Inc., Weld Racing, Inc.,
 Performance Wheel Outlet, Inc., and Trademarketing Resources, Inc. will be
 able to successfully develop licensing arrangements, which would have a
 material adverse effect on the royalties Cragar anticipates from the licensing
 arrangements.  There is no assurance that the Company's brand extension
 strategy will be implemented, and if so, whether it will be successful.
 Finally, there is no assurance the investment in Wrenchead, Inc. will have any
 value to Cragar.
 
 SOURCE  Cragar Industries, Inc.